Deutsche Bank not keen on DHFL buy

This now leaves 23 suitors in fray who have expressed interest to buy DHFL.

The bank, which has been lapping up junk bonds of DHFL on behalf of its offshore clients, backed out due to conflict of interest as it may have these bond on its books, one of the persons cited above said.

Company Summary

Loading data...

PEER COMPANIES

Mumbai: German lender Deutsche Bank has pulled out of the race to bid for embattled mortgage lender Dewan Housing Finance citing clash of interests, two persons familiar with the development said.

The bank, which has been lapping up junk bonds of DHFL on behalf of its offshore clients, backed out due to conflict of interest as it may have these bond on its books, one of the persons cited above said.

This now leaves 23 suitors in fray who have expressed interest to buy DHFL.

“Deutsche Bank hasn’t submitted documents for it to get cleared under the ‘fit & proper’ rule, a prerequisite to gain eligibility to submit final bids, this is due to conflict of interest as the lender also has exposure to DHFL bonds,” said an official involved in the bid process.

Deutsche Bank declined to comment.

In December last year, Deutsche Bank bought DHFL bonds worth Rs 20 crore at a deep discount of nearly 80 per cent. These bonds were priced at Rs 22.39 against a per unit face value of Rs 100. Deutsche Bank, which has a dedicated focus on dealing in distressed asset situations, either keeps it on its books or passes it on to offshore clients.

“For the housing finance company under administration we have received 23 expression of interest, there is very good investor interest in the financial sector of the country,” said Rajnish Kumar, chairman, SBI DHFL is the first financial services company to be admitted to the bankruptcy courts after the Reserve Bank of India superseded its board and appointed former Indian Overseas Bank chief, R Subramaniakumar, to resolve the Rs 85,000-crore debt.